“I wasn’t surprised that the Greater Los Angeles median home price is at $939,500. What tells the story is where buyers are going and how rapidly properties are being sold,” Hepp observes. “How many areas around Los Angeles have homes selling for as much as 67% over asking price are the numbers buyers should pay attention to,” she adds.

If you like living on Los Angeles’ desirable westside or an area close to downtown like South Pasadena, expect to fork over several million dollars, if you are lucky enough to find what you want. Listen to Hepp: “For a full-size family home without a major commute, buyers will have to pay $2 to $3 million and that’s rapidly increasing.” While the number of April 2018 home sales are equal to April 2017, demand has grown for homes priced between $2 million and $3 million.

April 2018 median home prices

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In West Los Angeles, the year-to-date (YTD) median price increased 20% to $1,225,000. Yet when I searched Zillow, only 11 single-family homes appeared for sale. Prices ranged from a low of $1,760,000 for essentially a tear-down, on a 5,850 square foot lot described as, “Great opportunity for a remodel or developer.” The highest-priced listing rang in at $2,950,000 for a 3,894 square foot renovated Spanish-style home with a guest house on a desirable street. If you are buying in West Los Angeles, be ready to move fast as homes in April stayed on the market only 19 days. Plus, suit up for bidding wars. Some 54% of the West LA home listings sold above asking price.

Homes selling over asking price around Los Angeles

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Head east to the greater Pasadena area, a desirable spot for downtown commuters, where 62% of all homes sold over asking price in April. Prices there are still better than West Los Angeles, with a median price tag of $868,000, only 10% above the previous year. In South Pasadena, according to Zillow, there were 17 active listings with prices from $3,380,000 to $610,000 for a 432 square foot house that looked like a major tear-down on a 2,504 square foot lot. On that listing, potential buyers are advised to, “do their own due-diligence with the city of Pasadena for zoning and rebuild options.”

Where do you go when you must live in the greater Los Angeles area and want to own a home? I asked Hepp for some thoughts based on her research. “I always say think about and explore other neighborhoods and areas that weren’t your top choices. Los Angeles is a big metro area, you just have to open up your options.”

Hepp points to Burbank, with Hollywood Burbank Airport, good accessibility to several major freeways, nice parks, and tree-lined neighborhoods. Up and coming areas include, Magnolia Park, rich with cool cafes, small restaurants, vintage shopping and a full calendar of community events. Burbank has good inventory, according to Zillow with 121 single-family homes for sale. For $775,000 you can buy an updated 1,308 square foot home on a corner-lot, complete with white picket fence. Though that price may still cause gasps, consider it’s much less than a similar home in West Los Angeles. As Hepp says, “open up your options.”

Despite natural disasters, commuting nightmares and staggering home prices, Los Angeles remains the city of dreams for those who can afford it.